Gold price is testing important resistance near $1,200. The trend remains bearish as long as gold price is below $1,205. The weekly trend remains neutral as long as gold price is between $1,240 and $1,170. Gold is now at a price level where I prefer to open short positions rather than long positions.
Red line = resistance
Green line = support
Gold price as shown in the weekly chart above, remains between the kijun-sen and the tenkan-sen. Short-term resistance at $1,213 is shown by the red horizontal trendline. Support at $1,178 is shown by the green horizontal trend line. If the red line is broken, we should expect Gold price to test the tenkan-sen at $1,238. If support is broken, then at the same time the kijun-sen will be broken. So very strong support and important trend level on a weekly basis is $1,178.
Red line= resistance
Blue line= support
Gold price in the short-term is making lower highs and lower lows. Trend remains bearish as long as price is below $1,205. If this level is broken upwards then $1,213 will be tested and most probably gold will test also $1,240. At current price levels I prefer to look for short positions with $1,205 as stop. Target at $1,170. If $1,170 is broken on a daily basis then we should expect a price move to $1,140.
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